November 21, 2007

US corn production down, prices are up

Figures from the US Department of Agriculture show that US corn yield was down 1.7 bushels per acre to 153 (7.5 tonnes per hectare), pushing production down to 13.2 billion (335 million tonnes) but still the largest on record. Lower yields accounted for the decrease in corn production this month, according to the USDA.

Feed and residual use of corn is down as well as with stocks, but exports have increased from last month. Corn prices were raised this month because of decreased ending stocks and strong cash and futures prices.

US feed grain production for 2007/08 is forecast at 353.5 million tonnes, down from 357.0 tonnes last month but up from 279.9 tonnes in 2006/07. The month-to-month decrease came from corn, as sorghum was up slightly; barley and oats were unchanged this month.

On a September-August marketing year basis, feed and residual use for the four feed grains plus wheat in 2007/08 is projected to total 157.4 million tonnes, up from 154.1 million a year earlier. Corn is estimated to account for 91 percent of the total, down from 92 percent in 2006/07. Most inventories for all the animal categories are expected to increase, except cattle on feed. Milk production in 2008 is projected to be up nearly 3 percent.

While projected pork production is down slightly from last month, it is forecast up 2 percent from 2007. Total poultry production forecast this month is also up in 2008 as the forecast was raised for broiler and turkey production. Total poultry production is expected to exceed that in 2007 by nearly 3 percent.